The following are the actual results for Bentler Associates for the most recent period: 63,360 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 823,680 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required B Construct the master budget for the period. BENTLER ASSOCIATES 190,080 38,550 $ 595,050 Required A 371,500 103,450 $ 120,100 Complete this question by entering your answers in the tabs below.
The following are the actual results for Bentler Associates for the most recent period: 63,360 units Sales volume Sales revenue Variable costs Manufacturing Marketing and administrative Contribution margin Fixed costs Manufacturing Marketing and administrative Operating profit Required: a. Construct the master budget for the period. b. Prepare a profit variance analysis. $ 823,680 The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been $648,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are estimated at $5 per unit at the budgeted volume of 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit at the budgeted volume." Required B Construct the master budget for the period. BENTLER ASSOCIATES 190,080 38,550 $ 595,050 Required A 371,500 103,450 $ 120,100 Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:The following are the actual results for Bentler Associates for the most recent period:
63,360 units
Sales volume
Sales revenue
Variable costs
Manufacturing
Marketing and administrative
Contribution margin
Fixed costs
Manufacturing
Marketing and administrative
Operating profit
Required:
a. Construct the master budget for the period.
b. Prepare a profit variance analysis.
$ 823,680
The company planned to produce and sell 72,000 units for $12.50 each. At that volume, the contribution margin would have been
$648,000. Variable marketing and administrative costs are budgeted at 5 percent of sales revenue. Manufacturing fixed costs are
estimated at $5 per unit at the budgeted volume of 72,000 units. Management notes, "We budget an operating profit of $2.50 per unit
at the budgeted volume."
Required A
Required B
Construct the master budget for the period.
BENTLER ASSOCIATES
190,080
38,550
$ 595,050
371,500
103,450
$ 120,100
Complete this question by entering your answers in the tabs below.
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